Debate Exercise

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Debate Exercise

• Debate Exercise
• Euro Disney
• Kitikorn Saicholpitak

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Should Euro Disney pour money into the project,
build one or more theme parks and really make
this another Disney World?
Debate Question?
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Euro Disneys Problems

• Culture Differences
• Lower of attendances than expected
• Lack of productivity
• Economic recession in Europe
• Prices is too high
• Short of liquidity

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Yes, because of the following reason

• To reach Public expectation and standards
• To increase market penetration and market share
• To create image, and identity
• To increase operating cash flow

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To Reach Public Expectation and Standards

• Public will no longer be satisfied with the
  traditional attractions, which offered by many
  European parks. Adding more top quality
  attractions to keep up and those parks, which
  grow and upgrade will prosper and those that
  stagnate will die.

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To Increase Market Penetration and Market Share

• The European parks have traditionally had much
  lower rates of penetration than the US. Building
  more high quality theme parks and more
  advertising will raise awareness of themed
  attraction. Consequently, market penetration will
  go up and gain more market share.

Moreover, if we wait for the upturn, it maybe too
late for capture the market shares because it
takes years to build and market the theme parks.
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To Create Image and Identity

• Creating more theme parks will create new kind
  and experiences of attraction and identity.
• Theme Park Dont the word really mean
  Storyplace?
• The story park is its identitya combination of
  brands, stories, human values, memories, and
  special meanings that public attributes to it

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To Create Image and Identity

• For example, consider if I have alternatives
  between go to Six Flags or Disney world, what
  would I like to go more? Absolutely, I prefer to
  go to Disney World because I recognize that
  Disney World is bigger and provides more fantasy
  to me than Six Flags.

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To Increase Operating Cash Flow

• From the reason above, I believe that invest to
  build one or more theme parks are necessary. It
  will bring more people to the park, and encourage
  people to stay longer. Overall businesses will
  receive this benefits including hotels, parks,
  restaurants, and shops. Consequently, it will
  increase the operating cash flow and liquidity to
  the Euro Disney.

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To Increase Operating Cash Flow
The table above shows the operational statistics
from 1992 to 1999.
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To Increase Operating Cash Flow
These figure came from Disney Pariss 1995
Financial Statement
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To Increase Operating Cash Flow
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To Increase Operating Cash Flow
Spending per Customer will increase 28
percent. Fixed Costs will increase 28 and can go
up to 36.
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To Increase Operating Cash Flow
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Attendance (Million)
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Conclusion

• Building more theme parks are the reasonable
  alternative for Euro Disney because to market and
  build new theme parks may take years. Then, if we
  wait for the upturn, it maybe too late to capture
  the market shares. Moreover, The most important
  thing is to create more cash flow into the
  company. If we do not create more attractiveness,
  awareness, and fantasy by building more theme
  parks, people will perceive that Euro Disney is
  just a theme park that they can experience at any
  theme parks

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Conclusion

• Why they have to go to Euro Disney? We can see
  the evidence from the Disney World. First when
  Disney World opened, it also face the massive
  loss like the Euro Disney but today, Disney World
  is the most profitable theme park in the US or
  maybe in the world. It makes profit because it is
  big and different, and when people think about
  theme park in US, they think about Disney World.
  Finally, The most important thing in marketing is
  to create something differences from competitors,
  create more satisfaction to customers, and bring
  as much as cash flow into the company.